Universal credit & self employed

Loobyloum81

I am self employed hairdresser and I work at a small salon and pay rent. I have signed up to universal credit, as I have not been self employed long enough to claim the 80% of my wage. The owner of the salon I work at has advised they have applied for a small business grant and if this comes through will give all of the self employed staff a small amount each week to help us out. Will this count against any universal credit I am due?

SuperWizard

It appears that as long as the monthly amount does not exceed £512 (based on a single person with limited capacity to work and no housing costs award), your UC won't be affected but you'll lose 63p of your UC for every £1 over that monthly amount.

Jeremy535897

Are you still paying rent, or has that stopped? If it hasn't just ask the owner to set it against your rent.
I am not an expert on the intricacies of universal credit, but I came across this wording as to what gratuities are not included:
"Any tips or gratuities that are made as a gift unconnected to the self-employment, for example, on personal grounds should not be included in the actual receipts of the business."
I think that there is a risk that it would be counted, but it is by no means certain.

calcotti

SuperWizard said:

It appears that as long as the monthly amount does not exceed £512 (based on a single person with limited capacity to work and no housing costs award), your UC won't be affected but you'll lose 63p of your UC for every £1 over that monthly amount.

The £512 is only true if the OP is eligible for a Work Allowance because she has a child or Limited Capability for Work and does not pay rent.

OP, my instinct is that because it's in recognition of your self employment it could be treated as self employed income. If you are not eligible for a Work Allowance then your Uc will be reduced by 63% of the amount you receive. However I accept that, as suggested yay Jeremy, it could be treated a gratuity - but I think it's difficult o argue that it is unconnected with the self-employment. I think a Decision Maker at the DWP may have to decide in which case we can't give a definite answer.